Elon Musk: Twitter could go bankrupt as more executives resign

Twitter’s new owner, Elon Musk, has raised the possibility of the social media platform going bankrupt as two executives of the company resigned.

The billionaire told Twitter employees on a call that that he could not rule out bankruptcy, two weeks after buying it for $44 billion – a deal that credit experts say has left Twitter’s finances in a precarious position.

Two executives – Yoel Roth and Robin Wheeler – who moderated a Twitter Spaces chat with Musk on Wednesday as he tried to assuage advertisers’ concerns, have resigned, one person close to the matter told Reuters.

Roth and Wheeler did not immediately respond to requests for comment. Bloomberg and tech site Platformer reported the exits first.
Earlier on Thursday, Twitter’s Chief Security Officer Lea Kissner tweeted that she had quit.

Chief Privacy Officer, Damien Kieran, and Chief Compliance Officer, Marianne Fogarty, also resigned, according to an internal message posted to Twitter’s Slack messaging system on Thursday by an attorney on its privacy team.

The U.S. Federal Trade Commission said it was watching Twitter with “deep concern” after these three privacy and compliance officers quit.

These resignations potentially put Twitter at risk of violating regulatory orders.

In his first meeting with all employees at Twitter on Thursday afternoon, Musk warned that the company may lose billions of dollars next year.

Twitter did not respond to requests for comment on a potential bankruptcy, the FTC warning, or the departures.

Wheeler was the face of Twitter for advertising after Musk took over. Roth, who was head of safety and integrity at Twitter, has said Twitter had reduced views of harmful content in search results by 95% compared to before Musk’s acquisition.

Elon Musk, who ruthlessly moved to clean house after taking over Twitter for $44 billion on October 27, has said the company was losing more than $4 million a day, largely because advertisers started fleeing once he took over.

Musk has saddled Twitter with $13 billion in debt, on which it faces interest payments totaling close to $1.2 billion in the next 12 months.

The payments exceed Twitter’s most recently disclosed cash flow, which amounted to $1.1 billion as of the end of June.

Musk announced plans to cut half its workforce last week, promised to stop fake accounts and is charging $8 a month for the Twitter Blue service that will include a blue check verification.

The world’s richest man also sent his first email to Twitter employees on Thursday, saying remote work would no longer be allowed and that they would be expected in office for at least 40 hours per week.

The Star